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(Corrects firm's name to Foglamp Capital Partners from Foglight Capital in paragraph 8)
By Svea Herbst-Bayliss
BOSTON, June 2 (Reuters) - Some hedge fund managers can finally brag a little as several prominent ones, including Daniel Loeb and William Ackman, last month beat the broader stock market's gains, early returns show.
Loeb, who runs $16 billion Third Point, told investors his Third Point Partners LP fund gained 2.1 percent in May while its more aggressive Third Point Ultra Ltd fund climbed 3.5 percent. The Pershing Square Holdings Ltd fund, run by Ackman's $11 billion Pershing Square Capital Management, meanwhile climbed 2.4 percent in May.
Both beat the average hedge fund's 0.24 percent gain in May plus the broader Standard & Poor 500 stock market index's 1.4 percent gain.
Third Point Ultra is up 16.1 percent in the first five months of 2017 and Partners is up 9.9 percent. Ackman's fund is up 4.3 percent, after two years of losses.
The gains come at a critical time as industry investors protest lackluster returns with calls for lower fees. Many hedge fund managers were wrong-footed by last year's U.S. election inspired rally but said they are now finding their way with bets on foreign stocks and undervalued U.S. companies.
The Citadel Wellington fund, run by Ken Griffin's $26 billion Citadel, gained 1.9 percent in May and is up 5.5 percent for the year. Dan Och's $32.4 billion Och-Ziff Capital Management's OZ Master Fund gained 1.31 percent last month, leaving it up 6.15 percent for the year. Its OZ Asia Master Fund notched a 3.72 percent gain in May, leaving it up 12.45 percent for the year.
Some smaller funds, especially activist oriented strategies also gained. Mick McGuire's Marcato Capital Management, which put three directors on the board at Buffalo Wild Wings, gained 1.6 percent in May and is up 7.7 percent for the year. Scott Ferguson's Sachem Head LP fund gained 2.48 percent last month.
Foglamp Capital Partners, which focuses on companies that have been beaten down with a chance to recover gained 4.2 percent in May and is up 11.4 percent this year. Network software company Gigamon Inc. was one of its biggest winners last month.
But there were losers as well, including David Einhorn's Greenlight Capital, now waging a proxy battle at General Motors. The fund lost 3.7 percent in May and is off 3.3 percent this year. (Reporting by Svea Herbst-Bayliss; Editing by Andrew Hay)